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Lessons in Stakeholder Management & Execution at Terra Nova Field, Offshore Newfoundland

Explore stakeholder relationships, project execution experiences & challenges faced at Terra Nova Field Development. Insights on alliances, organizational development, & risk mitigation strategies discussed by Arne Liverud, VP at Norsk Hydro.

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Lessons in Stakeholder Management & Execution at Terra Nova Field, Offshore Newfoundland

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  1. NSP APRIL 26-01 STAKEHOLDER MANAGEMENT AND PROJECT EXECUTION EXPERIENCE TERRA NOVA FIELD DEVELOPEMENT, OFFSHORE NEW FOUNDLAND By Arne Liverud Vice President, Norsk Hydro

  2. Terra Nova Developement Concept

  3. STAKEHOLDERS • Terra Nova Owners ( 2,7B Cn$) • Provinsional Goverment • People of New Foundland / Media • Trade Unions • Grand Banks Executive Committee • Stock market

  4. The Structure of the Relationships

  5. FRAME WORK FOR TERRA NOVA ALLIANCE • ANDREW FIELD UK DEVELOPEMENT ALLIANCE EXPERIENCE • FORGOTTEN: • Mature Concept • Few technical challenges • REMEMBERED: • High Profit for Contractors • HIBERNIA FIELD NF. DEVEVOPEMENT EXPERIENCE • FORGOTTEN: • Major Budget Overrun • REMEMBERED: • Created work for thousands of people

  6. Organisation Charts, Terra Nova Transportation & Marketing Reservoir,Drilling & Facilities Production Drilling General Manager- Project Implementation Operations Manager Developement Services

  7. Operation Reservoir Drilling OPERATOR PCL Engineering Procurement Fabrication Welldesign HALIBURTON BROWN & ROOT AGRA-MONECO Subsea FMC Risers Glory Holes Flowlines COFLEXIP DORIS CONPRO ALLIANCE TEAM

  8. Ardersier Calgary Kongsberg St. Johns OPKO London Houston Abu Dabi Paris Geographic challenges

  9. Norwegian Continental Shelf (NORSOK WAY): Operator team and EPC Contractors Terra Nova Way: Full integration between Operator and Contractors. Execution Difference

  10. Norwegian Continental Shelf : Issue Driven (METRICS) Terra Nova: Alignement Driven (PEOPLE) TEAMBUILDING DIFFERENCES

  11. Nationalities Risk Culture Purpose Expectation Allignment Transperancy Budgets/Schedule/Interfaces Stakeholders Organizational development Past Experience Terra Nova Challenge Design basis & fit for purpose terminology Gap Identification People and communication challenges

  12. RISK MITIGATION OLD RIG VERSUS NEW DRILLING ?

  13. Henry Goodrich

  14. RISERS RISK MITIGATION - MARINE WORKS

  15. GLORYHOLES RISK MITIGATION - MARINE WORKS

  16. GLORY HOLES RISK MITIGATION - MARINE WORKS

  17. St. Johns Follow on Eng. ENGINEERING / PROCUREMENT - Risk London Detail Eng.

  18. Culture - Risk - Communication FPSO Korea

  19. FPSO Sail away

  20. TURRET FIT FOR PRUPOSE REQUIREMENTS COMBINED WITH PROTOTYPE DEVELOPEMENT. RESULTS IN CONSISTENCY GAP.

  21. Turret Abu Dhabi

  22. CHALLENGE: ALIGNMENT TOWARDS ADEQUATE QUALITY STANDARD. GULF OF MEXICO CULTURE NORTH SEA CULTURE SUBSEA

  23. Subsea Templates

  24. Subsea templates St. Johns (Transfer of technology)

  25. FACILITIES FABRICATION OWNERS - TRADE UNIONS - POLITICIANS - MEDIA

  26. Bull Arm

  27. Barmac

  28. ICEBERGS - RISK MITIGATION

  29. ICEBERG - RISK MITIGATION

  30. Iceberg

  31. LESSONS LEARNED • Alliance should be designed around interface added value and competence synergies. • Generate thourough insight in cost and payoff when the selected method for execution has limited experience. • Selective quality management from experienced operator personell will reduce quality cost ( rework). • Implementation of prototypes ( technology, organization, culture) requires extended riskevaluation and consequential analysis.

  32. LESSONS LEARNED continued... • Global spread of activities to catch best prices counteracts alignments around quality issues. Quality isues "pops" up in the end and cost for fixing multiplies. • Try to be distinct in sorting out facts and interpretations. • Try to be distinct in sorting out cost and payoffs. • Keep optimizm under control. It may blur reality.

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